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India Gazette
6 days ago
- Business
- India Gazette
EVs to drive lithium-ion battery demand growth by remarkable 48% CAGR through 2030: Report
New Delhi [India], July 9 (ANI): The lithium-ion battery (LiB) market in India is poised for rapid growth, driven by increasing demand from consumer electronics (CEs), electric vehicles (EVs), and stationary storage (SS) applications, according to a joint report by India Cellular and Electronics Association (ICEA) and Accenture. The demand for lithium-ion battery is expected to reach 115 GWh by 2030 with consumer electronics growth projected at 3 per cent, stationary storage at 14 per cent, and EVs at a remarkable 48 per cent CAGR between now and 2030. As per the report, this growth will also be supported by India's commitments to Net-Zero goals and favorable government policies on catalysing demand for low-carbon energy, cell manufacturing, and end-of-life (EoL) management of lithium-ion batteries. On the flip side, with rise in this demand, India also faces challenges such as a rising import bill and environmental impact due to disposal of end-of-life lithium-ion batteries. 'India currently lacks Li-ion cell pack manufacturing capabilities and mining infrastructure, making it heavily reliant on imports of LiBs consisting of critical battery-active materials such as Lithium, Cobalt, Nickel, and Manganese,' the ICEA report read. The projected cumulative demand for the period 2024 to 2030 for these critical active materials is estimated to reach more than 250kT, translating into an import exposure of more than USD 5 billion. To address these challenges, the government has introduced various policy interventions, such as the Critical Minerals Mission, trade duty exemptions on critical minerals, among others. Further, CPCB introduced the Battery Waste Management Rules (BWMR) in 2022, establishing a regulatory framework to foster recycling and retention of critical battery-active materials within India. Nearly 39 per cent of consumer electronics batteries that have reached their end-of-life do not get collected. At COP26 held in 2021, India committed to an ambitious five-part 'Panchamrit' pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070. (ANI)
Time of India
6 days ago
- Business
- Time of India
EVs to drive lithium-ion battery demand growth by remarkable 48% CAGR through 2030
The lithium-ion battery (LiB) market in India is poised for rapid growth, driven by increasing demand from consumer electronics (CEs), electric vehicles (EVs), and stationary storage (SS) applications, according to a joint report by India Cellular and Electronics Association (ICEA) and Accenture. The demand for lithium-ion battery is expected to reach 115 GWh by 2030 with consumer electronics growth projected at 3 per cent, stationary storage at 14 per cent, and EVs at a remarkable 48 per cent CAGR between now and 2030. As per the report, this growth will also be supported by India's commitments to Net-Zero goals and favorable government policies on catalysing demand for low-carbon energy, cell manufacturing, and end-of-life (EoL) management of lithium-ion batteries. On the flip side, with rise in this demand, India also faces challenges such as a rising import bill and environmental impact due to disposal of end-of-life lithium-ion batteries. "India currently lacks Li-ion cell pack manufacturing capabilities and mining infrastructure, making it heavily reliant on imports of LiBs consisting of critical battery-active materials such as Lithium, Cobalt, Nickel, and Manganese," the ICEA report read. The projected cumulative demand for the period 2024 to 2030 for these critical active materials is estimated to reach more than 250kT, translating into an import exposure of more than USD 5 billion. To address these challenges, the government has introduced various policy interventions, such as the Critical Minerals Mission, trade duty exemptions on critical minerals, among others. Further, CPCB introduced the Battery Waste Management Rules (BWMR) in 2022, establishing a regulatory framework to foster recycling and retention of critical battery-active materials within India. Nearly 39 per cent of consumer electronics batteries that have reached their end-of-life do not get collected. At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.
Time of India
6 days ago
- Business
- Time of India
EV battery outlook: Lithium-ion demand set to jump 48% by 2030, says ICEA report; Import reliance and EoL waste pose key challenges
The lithium-ion battery (LiB) market in India is projected to grow sharply over the next five years, led by rising demand from electric vehicles, consumer electronics, and stationary storage applications, according to a joint report released by the India Cellular and Electronics Association (ICEA) and Accenture. Tired of too many ads? go ad free now The report estimates that total LiB demand will reach 115 GWh by 2030, with electric vehicle-linked usage expected to grow at a compound annual growth rate (CAGR) of 48%. In comparison, demand from stationary storage is projected to grow at 14% CAGR and from consumer electronics at 3%, ANI reported. The surge in demand comes amid India's broader push towards its Net Zero targets and the government's supportive policies on clean energy adoption, domestic cell manufacturing, and battery end-of-life (EoL) management. However, the report also highlights structural challenges related to import dependence and environmental risks. Imports rise as local capacity lags 'India currently lacks Li-ion cell pack manufacturing capabilities and mining infrastructure, making it heavily reliant on imports of LiBs consisting of critical battery-active materials such as lithium, cobalt, nickel, and manganese,' the report noted. ICEA and Accenture estimate that cumulative demand for these critical materials will exceed 250 kilo tonnes between 2024 and 2030, translating to an import exposure of over $5 billion. To address these risks, the government has launched initiatives including the Critical Minerals Mission and exemptions on trade duties for key minerals. The report also references the Battery Waste Management Rules (BWMR), introduced by the Central Pollution Control Board (CPCB) in 2022, which mandate responsible disposal and recycling of used batteries. Collection remains low despite rules Despite the regulatory push, about 39% of end-of-life consumer electronics batteries are not being collected, the report observed. Tired of too many ads? go ad free now India's goals under its COP26 'Panchamrit' pledge include achieving 500 GW of non-fossil electricity capacity and cutting emissions by 1 billion tonnes by 2030. It also plans to reduce GDP emissions intensity by 45% and achieve net-zero carbon emissions by 2070. According to the report, India's ability to meet these targets hinges partly on its capacity to scale Li-ion battery production while managing the supply chain and environmental footprint.
Time Business News
07-07-2025
- Automotive
- Time Business News
Indian Companies Target Opportunities in Rare Earth Magnet Supply Gap
(Export ratio of rare earth magnets) India's automotive industry faces a crisis, with 21 companies (such as Bosch India, TVS Motor, and Sona Comstar) awaiting Chinese export approvals, with inventories expected to be depleted by July 2025. Maruti Suzuki has cut its e-Vitara production by two-thirds, while Bajaj Auto anticipates a halt in electric scooter production. Heavy Industries Secretary Kamran Rizvi has urged local suppliers to provide feasible timelines, with EY assisting in formulating contingency plans. A report by the Society of Indian Automobile Manufacturers estimates that prolonged supply disruptions could lead to a $2 billion production loss by 2025. China's dominance in processing over 90% of the world's rare earth magnets, combined with its 2024 export restrictions, has caused a supply chain crisis in India's $240 billion automotive industry. This has disrupted the production of key components like EV motors and sensors. The problem is made worse by India's limited processing capacity. Even though India has the world's third-largest rare earth reserves, it produced only 2,900 tons in 2024 – about 1.2% of global output. Another weakness is that 60-70% of India's EV parts come from China, forcing the country to change direction. Indian companies use new technology, recycling, and foreign partnerships to strengthen their local supply chains and become more self-sufficient and secure. A 2025 Crisil Ratings report warns that if India doesn't reduce its need for Chinese rare earths, its auto industry could lose $5 billion annually. National Critical Minerals Mission (NCMM) and Incentives To address the crisis, the Indian government launched the National Critical Minerals Mission (NCMM) in 2024, aiming to significantly reduce reliance on Chinese rare earth imports by 2030, aiming to produce 10,000 tons of rare earth concentrates annually. The Heavy Industries Ministry's $1 billion Production-Linked Incentive (PLI) scheme aims to bridge the 20-30% cost gap between Indian and Chinese manufacturing while waiving processing equipment tariffs to lower entry barriers. Companies like Midwestern Advanced Materials plan to produce 500 tons of magnets by 2026, while Indian Rare Earths Limited (IREL) aims for 450 tons of neodymium magnets. IREL faces challenges due to the relatively low proportion of high-value rare earths in its resources and requires approximately $500 million in processing facility upgrades. Strategic Pivot to Diversify Supply Chains India is diversifying its supply chain through partnerships with Latin American countries. Brazil's Pera Ema mine received a $170 million investment from India's joint venture mining company KABIL, aiming to meet 20% of India's EV rare earth demand by 2027. Argentina's Susques and Chile's Penco mines secured $24 million from KABIL for lithium-rare earth co-mining. These projects face environmental and indigenous rights challenges, with full production expected to take 5-7 years. A 2025 World Bank report confirms Latin America holds 15% of global rare earth reserves, making it a strategic pivot to counter China's dominance. Australia's Lynas Corporation, producing about 5,000 tons of rare earth oxides annually, could cover 10% of India's import demand gap from China. India is negotiating with companies like Australia's Iluka Resources to secure a stable supply of 1,000 tons by 2026. In 2024, India suspended a $7 million rare earth oxide export contract with Japan's Toyota Tsusho to prioritize domestic demand, raising concerns about long-term trade relationship impacts. Rare Earth Market Growth Drivers India's rare earth market, valued at approximately $40.7 million in 2024, is projected to grow to $62.9 million by 2030, driven primarily by EV demand and defence applications. Dependence on Chinese rare earth magnets is expected to decline from its 2020 peak to 54% by 2025. Strong growth in domestic two- and three-wheeler EV sales is a core demand driver, with the Indian government targeting EVs to account for 30% of new vehicle sales by 2030. New Opportunities in the Circular Economy Indian battery recycling company Lohum is expanding its expertise in lithium, cobalt, and nickel extraction to recover rare earths like neodymium and dysprosium from used batteries and motors. In 2024, Lohum processed 5,000 tons of related e-waste, recovering 200 kg of rare earths, with plans to double capacity by 2027. Its low-energy refining process reduces carbon emissions by 40% compared to traditional mining, aligning with India's 2070 net-zero target. Co-founder Rajat Verma stated that the company is negotiating with three Indian motor manufacturers to supply 10% of domestic rare earth magnet demand by 2026. Driven by the NCMM framework, Latin American mining partnerships, and innovations from companies like Conifer Energy, Lohum, and TOPMAG, India has the potential to become a more resilient rare earth supply chain participant by 2030, targeting 15% of global magnet demand. However, success hinges on overcoming a $7 billion processing investment requirement, closing technological gaps, and addressing environmental challenges. TIME BUSINESS NEWS
